BT Industries 1998: In position for continued growth

BT Industries 1998: In position for continued growth *Orders received SEK 8,924 m., +46% *Invoiced sales SEK 8,838 m., +48% *Income after net finan. items SEK 544 m. (370), +47% *Earnings per share SEK 11.10 (7.20), +54% *Market growth +10% BT Industries' orders received amounted to SEK 8,924 m. (6,113) in 1998. For comparable units - i.e. excluding Raymond and MHC - and at comparable exchange rates, orders received rose by slightly over 10% compared with 1997. Invoiced sales amounted to SEK 8,838 m. (5,956), an increase of 48%. For comparable units and at comparable exchange rates, invoiced sales rose by 11%. Income after net financial items amounted to SEK 544 m. (370). Earnings per share (after full tax) rose by 54%, from SEK 7.20 to SEK 11.10. The proposed dividend has been raised from SEK 2.75 /share to SEK 3.25. Market growth continues Demand for warehouse trucks developed strongly both in Europe and North America. Total market growth is estimated at 10%, slightly higher in Western Europe, slightly lower in North America. Global market volume is estimated at slightly over 200,000 units. Outside the two main markets, Western Europe and North America, the previously high growth rate slowed somewhat. In Japan and Russia, the markets for warehouse trucks declined. Despite the market's favorable development, price competition remains intense. An eventful year "We have good reason to be pleased with the past year," says CEO Carl-Erik Ridderstråle, pointing to a number of important events: In the U.S. an extended and expanded delivery agreement was signed in April with Toyota Industrial Equipment, whereby BT manufactures trucks under the Toyota brand name. The agreement helps BT reach customers outside its traditional customer base. Among the year's highlights was the signing of a delivery agreement with The Home Depot covering 4,500 trucks for delivery in 1999 and 2000. At the end of the year BT completed the modernization of its spare part center in Syracuse, which handles all spare part distribution in North America. In Eastern Europe, BT took over control of its distribution by concluding the acquisition in May of MHC, with sales and service operations in eight Eastern European countries. In Australia, a new wholly owned sales and service company was established in June. In Canada, a new plant for hand pallet trucks was placed in operation during the autumn. BT's former sales and service company in Canada was integrated in the BT RAYMOND business area. In Europe, a cooperation agreement was signed in December with Toyota Industrial Equipment according to which BT manufactures trucks under the Toyota brand name. The agreement increases BT's production volume and strengthens its coverage of the European market. Cost-cutting objectives achieved In addition, a number of new products were launched in Europe and North America, including a new stand-in low lifter, new order picking trucks and a new very narrow aisle truck. Of special note is the AC-powered Reflex reach truck, which has attracted a great deal of attention in the market. - Geographically and in terms of production, the Group is now strategically positioned for continued growth. Development of the product range continues at a high pace and we soon intend to broaden our range relative to both existing and completely new customer groups. - Coordination work to capitalize on synergies between Europe and North America is progressing well and we will achieve the cost-cutting objectives we have set. - In the short term we expect slightly lower market growth, but against the backdrop of a strong market position, a broader product range and concrete synergy effects, our growth objectives for both sales and income remain unchanged. Questions will be answered after 1:30 p.m. by CEO Carl-Erik Ridderstråle and CFO Per Zaunders at +46-142-860 00. For general questions, please contact PR Manager Göran Skoglund at +46-142-86 409 or +46-70-555 92 88. The report can be ordered by phone at +46-142-860 00 ( PR Department) or fax +46-142-863 20. The report is also available on BT Industries' home page at www.bt- industries.com. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/02/15/19990215BIT00220/bit0001.doc http://www.bit.se/bitonline/1999/02/15/19990215BIT00220/bit0002.pdf